Eugenia Lichauco v. Faustino Lichauco

Summary

This commercial law case involved a partnership dispute where managing partner Faustino Lichauco failed to account to his associates after dissolving their rice milling business in 1904. The Supreme Court held that partnerships are automatically dissolved when their business purpose ends, creating statutory obligations for managers to liquidate and account immediately. Despite having substantial funds, defendant failed to account for eight years until sued. The Court awarded partners their capital shares plus 6% annual interest from 1904 as damages for breach of statutory accounting duties, establishing important precedent that commercial partnership managers cannot delay liquidation accounting without legal consequences.